Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa

Orientation: Small, medium and micro enterprises (SMMEs) are prone to failure primarily because of inadequate human resource (HR) procedures despite their reputation for flexibility, closeness to dependable clients, adaptability and adoption of new technologies. Research purpose: This study aims to...

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Main Author: Jealous Sungwa
Format: Article
Language:English
Published: AOSIS 2025-01-01
Series:SA Journal of Human Resource Management
Subjects:
Online Access:https://sajhrm.co.za/index.php/sajhrm/article/view/2763
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author Jealous Sungwa
author_facet Jealous Sungwa
author_sort Jealous Sungwa
collection DOAJ
description Orientation: Small, medium and micro enterprises (SMMEs) are prone to failure primarily because of inadequate human resource (HR) procedures despite their reputation for flexibility, closeness to dependable clients, adaptability and adoption of new technologies. Research purpose: This study aims to explore strategic human resources management (SHRM) strategies for small businesses in South Africa to enhance survival rates. It investigates the pivotal role of HR in SMMEs, emphasising effective selection, recruitment, retention, and performance management for productivity and competitive advantage. Additionally, it elucidates the impact of SHRM practices on organisational efficacy and assesses the correlation between performance and training. Motivation for the study: The goals of SMMEs are to manage relationships, perform better and boost employee satisfaction through the effective use of HRs. This study’s interpretation of human resources management (HRM) is that it should be used to improve resource efficiency by applying HRM techniques. Further, performance management is another method that HRM shows up. Research approach/design and method: A desktop research on a PhD thesis published in 2014 used a positivist paradigm, descriptive research design, quantitative research approach and a survey research strategy, which included 50 respondents and was conducted in Polokwane in South Africa. The simple random probability sampling method employed a saturated sample technique as well as descriptive and path analytic tools. Main findings: The findings revealed that: (1) the results portray strong evidence between organisational capabilities (skills, knowledge) and organisational effectiveness and (2) business skills affect SMMEs’ profitability in South Africa. Practical/managerial implications: Through the advancement of a Resource-Based Entrepreneurship Theory (RBET), the study added to the body of knowledge. Contribution/value-add: This study makes a compelling case for the necessity of HRM procedures for the organisational efficacy of SMMEs.
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spelling doaj-art-3a94a0e8285241d198827be87ef80a8b2025-02-11T13:29:09ZengAOSISSA Journal of Human Resource Management1683-75842071-078X2025-01-01230e1e910.4102/sajhrm.v23i0.2763850Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South AfricaJealous Sungwa0Department of Business Management, Faculty of Commerce, Independent Institute of Education (IIE) Varsity College, PretoriaOrientation: Small, medium and micro enterprises (SMMEs) are prone to failure primarily because of inadequate human resource (HR) procedures despite their reputation for flexibility, closeness to dependable clients, adaptability and adoption of new technologies. Research purpose: This study aims to explore strategic human resources management (SHRM) strategies for small businesses in South Africa to enhance survival rates. It investigates the pivotal role of HR in SMMEs, emphasising effective selection, recruitment, retention, and performance management for productivity and competitive advantage. Additionally, it elucidates the impact of SHRM practices on organisational efficacy and assesses the correlation between performance and training. Motivation for the study: The goals of SMMEs are to manage relationships, perform better and boost employee satisfaction through the effective use of HRs. This study’s interpretation of human resources management (HRM) is that it should be used to improve resource efficiency by applying HRM techniques. Further, performance management is another method that HRM shows up. Research approach/design and method: A desktop research on a PhD thesis published in 2014 used a positivist paradigm, descriptive research design, quantitative research approach and a survey research strategy, which included 50 respondents and was conducted in Polokwane in South Africa. The simple random probability sampling method employed a saturated sample technique as well as descriptive and path analytic tools. Main findings: The findings revealed that: (1) the results portray strong evidence between organisational capabilities (skills, knowledge) and organisational effectiveness and (2) business skills affect SMMEs’ profitability in South Africa. Practical/managerial implications: Through the advancement of a Resource-Based Entrepreneurship Theory (RBET), the study added to the body of knowledge. Contribution/value-add: This study makes a compelling case for the necessity of HRM procedures for the organisational efficacy of SMMEs.https://sajhrm.co.za/index.php/sajhrm/article/view/2763opportunity cost theorystrategic reference point theoryentrepreneurship theoryrbetcontingency theoryconfigurationally theory.
spellingShingle Jealous Sungwa
Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa
SA Journal of Human Resource Management
opportunity cost theory
strategic reference point theory
entrepreneurship theory
rbet
contingency theory
configurationally theory.
title Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa
title_full Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa
title_fullStr Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa
title_full_unstemmed Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa
title_short Strategic human resources management practices are key to small, medium and micro enterprises effectiveness in South Africa
title_sort strategic human resources management practices are key to small medium and micro enterprises effectiveness in south africa
topic opportunity cost theory
strategic reference point theory
entrepreneurship theory
rbet
contingency theory
configurationally theory.
url https://sajhrm.co.za/index.php/sajhrm/article/view/2763
work_keys_str_mv AT jealoussungwa strategichumanresourcesmanagementpracticesarekeytosmallmediumandmicroenterpriseseffectivenessinsouthafrica